Relax-and-Enjoy Lake Development Corporation is developing a lakeside community at a privately owned lake. Relax-and-Enjoy employed the
Question:
Relax-and-Enjoy Lake Development Corporation is developing a lakeside community at a privately owned lake. Relax-and-Enjoy employed the advertising firm of Boone, Phillips, and Jackson (BP&J) to design the promotional campaign.
After considering possible advertising media and the market to be covered, BP&J recommended that the first month’s advertising be restricted to five media.
The quality rating is measured in terms of an exposure quality unit, a measure of the relative value of one advertisement in each of the media.
Advertising Media | Number of Potential Customers Reached | Cost ($) per Advertisement | Maximum Times Available per Month | Exposure Quality Units | |
1. | Daytime TV (1 min), station WKLA | 1000 | 1500 | 15 | 65 |
2. | Evening TV (30 sec), station WKLA | 2000 | 3000 | 10 | 90 |
3. | Website advertisement (banner ad) | 1500 | 400 | 25 | 40 |
4. | Sunday newspaper magazine ( page color), The Sunday Press | 2500 | 1000 | 4 | 60 |
5. | Radio, 8:00 a.m. or 5:00 p.m. news (30 sec), station KNOP | 300 | 100 | 30 | 20 |
Relax-and-Enjoy provided BP&J with an advertising budget of $30,000 for the first month’s campaign. In addition, Relax-and-Enjoy imposed the following restrictions on how BP&J may allocate these funds: At least 10 television commercials must be used, at least 50,000 potential customers must be reached, and no more than $18,000 may be spent on television advertisements. What advertising media selection plan should be recommended?
- What are the decision variables (Use NUN – Name, Units, Notation).
Use the following for Decision Variables – complete the NUN.
(e.g DTV = number of day time TV ads – this is notation and name. And unit – times/month)
- What are the objectives?
- Which of the objectives are constraints, and which makes sense to be the objective function?
- State the objective function in terms of the decision variables. Use Dimensional analysis to set it up. Dimension Analysis is the table and objectives / constraints written in LP format.
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds